The 10 Keys to Successful Stock Options Trading - Key #4

The 10 Keys to Successful Stock Options Trading – Key #4
Hello again and welcome back to part four in my ten part
series on how to trade stock options. This week we will
discuss one of the most important parts of trading not only
options but any financial instrument, and that is getting
into the trade at the right time.

Unfortunately that is easier said than done! If you get in
too early you risk losing some of your option value to time
decay, get in too late and you may miss an important move
in the underlying stock. The best way to time your entry
point is to use good technical analysis. Technical analysis
refers to reading and interpreting stock charts. As I
mentioned in part two of this series, institutional
investors are trading millions, if not billions, of dollars
in the market every day. However they are still human and
because it takes a long time for them move that much money
predictable patterns emerge in the stock charts. From those
patterns future price moves in the stock can be predicted.

Technical analysis is a mix between an art and a science
and can be quite complicated. Although the patterns are
predictable, of course the stock does not always follow the
pattern it should so it is important to use other
indicators in conjunction with technical analysis, such as
fundamental analysis (discussed in the last article),
company news and political and economic events. Because of
the complexity of technical analysis I will not go into the
how it is performed, there are several good books that I
would recommend you read that do that:
"Technical Analysis and the Financial Markets" by John
Murphy.
"Getting Started in Technical analysis" by Jack Schwager.
"Technical Analysis: The Complete Resource for Financial
Market Technicians" by Charles Kirkpatrick II.

Some of the main technical indicators in charts to watch
for are the support and resistance levels, breakouts on
volume, moving average crossovers and oversold/overbought
conditions. Sound technical analysis is a key component to
entering a trade. Next week I will discuss the next step
which is, quite aptly, how to decide when to exit the trade.

US Government required disclaimer: Options involve risk and
are not suitable for all investors. Prior to buying or
selling an option, a person must receive a copy of the
Characteristics and Risks of Standardized Options. Copies
of this document may be obtained from your broker, from any
exchange on which options are traded or by contacting The
Options Clearing Corporation, One North Wacker Dr., Suite
500 Chicago, IL 60606 (1-800-678-4667).

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Roger Cox was born in New Zealand and has lived in Los
Angeles for seven years. He was President of a freight
company at LAX before setting up his own consulting firm.
Roger has successfully traded stock options for over 4
years and teaches other people how to successfully trade at
http://www.prosperitywithoptions.com

With Profits Pension Funds - Beware

With Profits Pension Funds - Beware
If you have a "with profits" pension, or are being advised
to invest in one - read on urgently.

A survey by Money Management, an established personal
finance magazine, has once again highlighted the sinking
payouts to many investors from well known investment brands.

Lets take Standard Life as an example.

Here are the figures based on the Money Management survey.
For a saver who has invested £200 per month over 20 years,
the fund value from Standard Life would now be £94,752.
This is compared to the same saver receiving £243,375 in
2002.

This is a 61% drop!

In the same survey, many other major insurers showed
similar falls in payouts. For example:

Company, Now, 2002, Fall %

Axa, £103,663, £249,532, 58

Clerical Medical, £118,978, £195,031, 39

L&G, £105,145, £183,921, 43

Norwich Union, £107,097, £188,777, 43

Prudential, £124,305, £179,878, 31

Scottish Equitable, £108,105, £191,510, 44

Scottish Widows, £97,779, £164,342, 41

One of the reasons why this has happened, taking Standard
Life as an example again, is that they misjudged the market
in 2000. This meant they had to reduce the amount that the
fund invested in equities, which in turn led to lower
growth on the with profits fund.

On an ongoing basis, the picture is unlikely to improve for
those investors who have many more years before taking
their benefits. This is because the Standard Life with
profits fund has only 21% of its investments in shares,
which in the longer term is one of the main drivers of
growth.

Another issue here is that £144 billion of investors money
is invested in "closed funds". These are funds that are
closed to new business, and the survey shows that quite
often investors are getting a raw deal with returns.

An example here would be London Life, who turned £200 per
month over 20 years into £75,593!

If you add to the mix that there has been a fall in recent
years in annuity rates (the amount of pension you receive
in relation to the size of your fund), many investors are
very worried.

The survey further showed that investors in these types of
funds were totally confused as to what to do or what their
options are if they find themselves in one of these with
profits funds.

The Financial Tips Bottom Line:

If you have a with profits pension (or endowment), then do
not delay - find out how your fund is performing and then
you will be in a position to make an informed decision. You
will either decide to leave the money where it is or
transfer it to an alternative provider (the latter option
requires careful analysis as there may be penalties to
transfer the fund).

----------------------------------------------------
Ray Prince is an Independent Financial Planner with
Rutherford Wilkinson plc, and helps UK Resident Doctors and
Dentists get the best deals on mortgages, protection and
investments, as well as helping them achieve their
financial objectives. Just visit
http://www.medicaldentalfs.com to get your free retirement
planning guide. Rutherford Wilkinson plc is authorised and
regulated by the Financial Services Authority.

Home Loans 101: Buying, Refinancing & Getting Lenders To Say Yes

Home Loans 101: Buying, Refinancing & Getting Lenders To Say Yes
Buying a home is a big step. In fact, it's the most
expensive purchase that most people will ever make. Unless
you are fortunate enough to be able to pay cash for your
new abode, you will soon become familiar with home loan
lenders, mortgage loan interest rates and all of the
necessary paperwork that is required to get your home loan
approved. A mortgage loan, also known as a home loan, can
be a lengthy process. If you want to minimize your time
spent working with home loan lenders and start enjoying
your home faster, it's the perfect time to learn everything
that you can about mortgage loans.

When most people purchase a new home, they either plan to
live in it for many years or are purchasing it with the
thought of later cashing in on the equity if the property
value increases. In deciding which kind of home loan to
apply for, you must first decide how long you plan to live
in the home. A fixed rate mortgage loan is a popular
choice among those who plan to live in a home for 10 years
or more. As the name implies, this type of home loan
offers the buyer a fixed rate over the entire life of the
loan, which means the interest rate will never change.

An adjustable rate mortgage (ARM) is one in which the
interest adjusts according to the current market rates.
This type of home loan is popular for those who plan to
sell in several years in order to cash in on rising
property values. Interest-only loans, on the other hand,
allow potential home buyers to make payments toward the
loan's interest for a specified amount of time.

In determining your eligibility for a mortgage loan, your
credit report will be accessed so that the home loan lender
can evaluate your creditworthiness. Today, the average
American's credit score is under 700, but even those with
lower scores can be approved for a mortgage loan. The
truth is that you don't have to have excellent credit to
obtain a home loan. In fact, more home loan lenders are
granting bad credit loans to those who currently have the
ability to repay or have shown improvement in their credit
report. Even if you have a bankruptcy on your credit
report, most home loan lenders will begin to consider your
application after two years.

Before applying for a mortgage loan, it is recommended that
you check your credit reports from each of the three major
reporting bureaus, including TransUnion, Equifax and
Experian. Inspect each entry carefully and make sure that
all notations, including account numbers, balance, payment
history and contact information are correct. If anything
needs correction, file a dispute with the credit reporting
agency and await their reply. When you apply for a home
loan, your eligibility and interest rates will be
determined by the information contained in your credit
report, which is why it should be completely accurate when
you are ready to submit a loan application.

If you are considering a home equity loan based on your
property's current value, there are a number of home loan
lenders who are more than willing to accept an application.
The amount granted for a home equity loan will greatly
depend on your home's equity, but it will also depend on
your ability to repay the debt. Most home loan lenders
offer a free qualification process that will give you a
good idea as to how much, if any, you can borrow against
the current equity in your home.

The information contained in this article is designed to be
used for reference purposes only. It should not be used
as, in place of or in conjunction with professional
financial advice relating to mortgage loans, home loan
lenders, bad credit loans or the lending process as a
whole. For additional information, consult with a lender
who specializes in these types of loans.

----------------------------------------------------
Andrew Daigle is an author and creator of many
informational websites including
http://www.personal-payday-student-loans.com for different
types of loans and
http://www.auto-insurance-quotes-cheap.com for the cheapest
auto insurance, and many more.